All Forum Posts by: Brandon F.

@Stone Jin no I'd be getting a 30 Year FHA loan, they allow a lower down payment and lower interest rate but there is requirements: living on the property for one year, has to be a primary residence, and there's mortgage fees. After 1 year you can move out of it and get another FHA loan for another MF house, it wouldn't be conventional. Listening to Bigger pockets podcasts they call it "House Hacking". I'm sure you've heard of this but in case you haven't that's the base of it

@Stone Jin i see where I went wrong! Trulia automatically set the interest rate for an FHA loan at 0%, and I'm not sure why. But I looked it up and it said that it's currently at about 2.9%, changing the est mortgage cost to $2,164. After all the calculations however that's still $435 while on the property and $1,272 after leaving the property.

@Stone Jin thank you for the feedback! One of the 4plex's that is currently listed for sale in my area is listed at $450,000... in the description it's listed that the rents are $950, $950, $837, and $1012. The tenants pay electric and owner pays Gas, water, and trash which comes out to be about $313 (according to seller). Now living in the $837 unit would mean I'd collect about $2912 in rent, and pay 1,564 on est mortgage cost with 3.5% down. Minus the utilities this is about $1,035, the mortgage also includes property taxes, HOA, Home insurance, and mortgage insurance. So after I'd move out of the unit and got a replacement, it would turn into about $1872 in cash flow. Even if I were to take out $750 a month for possible repairs into a security account, then it'd end up being $1,122. Am i missing anything?

@Darius Ogloza Yes I did, they’re already calculated into the estimated monthly mortgage I’d have to pay on the property

@Jaspreet Baveja lucking I live in Az, which is a super dry state and the only things that happen here are dust storms. But I also calculated in putting $500 aside every month for any repairs that may be needed, should I put more ?

Being 17, I know i cant start house hacking till I'm a little bit older and have some money for a 3.5% Down payment on an FHA loan. I am planning on living with my parents for a year after college while working a full time job in Finance. I have some questions and it may be early but i want to learn as much as I can!

How do you spot a deal that is too good to be true? I went into Trulia, the real estate app, and found some multifamily houses for sale. I crunched some numbers, added up the rents for the 3 units of the 4plex, and once i subtracted the estimated mortgage, the Cash flow was about $1,300!! I feel like I might be missing something, because when i listen to Biggerpockets and the stories that people share about their house hacks, they are super excited and say they are lucky if they can make $500 in cash flow every month. I've done this with a couple other properties and noticed that it was around the same thing. I added up the numbers and after 3 years of househacking + buying with conventional loans, I could be making $8,000 a month in passive income in 3 years! Again, this just sounds too good to be true, and I want to learn as much as I can before I am ready. I know that mistakes are a great way to learn, but minimizing simple calculations would be great. (In mortgage calculations I also took out HOA, Utilities, A month of not having a tenant, and $500 for repair safety).

Also, is it easy to find tenants for a property? I've heard that property managers are a great thing to have, but if I can hold off on one for a while then that would be great too, just so i can maximize my cash flow to get the snowball rolling.

I am not asking for a mentor, just some advice. So if anyone has any that has been in the game, I would greatly appreciate it! Thank you!